Debt investors

Kingfisher finances its operations using a number of funding instruments, including medium term note debt, bank borrowings and leases.

As at 31 July 2020, Kingfisher had c.£1.4bn of net debt on its balance sheet, including £2.5bn of total lease liabilities under IFRS 16. The ratio of the Group’s net debt to EBITDA on a moving annual total basis is c.1.0 times as at 31 July 2020 (c.2.0 times at 31 January 2020). The reduction in net leverage reflects both the strong recovery in sales in Q2 20/21 and the largely temporary measures taken to preserve cash flows during the coronavirus crisis, providing the Group with strong financial flexibility.

Net debt to EBITDA is set out below:

  2020/21
£m
2019/20
£m

Retail profit

865

786

Central costs

(61)

(62)

Depreciation and amortisation

539

545

EBITDA

1,343

1,269

Net debt

1,377

2,526

Net debt to EBITDA

1.0x

2.0x

(1) Restated for IFRS 16

As at 31 July 2020, Kingfisher holds a BBB- credit rating with Fitch, (P) Baa2 rating with Moody’s, and a BBB- rating with Standard and Poor’s. Kingfisher aims to maintain its investment grade rating, whilst investing in the business where economic returns are attractive and, when the time is right,  paying an annual dividend to shareholders.

Kingfisher regularly reviews the level of cash and debt facilities required to fund its activities. This involves preparing a prudent cash flow forecast for the medium term, determining the level of debt facilities required to fund the business, planning for repayment of debt at its maturity and identifying an appropriate amount of headroom to provide a reserve against unexpected outflows.

For any questions or queries please contact:

Maj Nazir
Group Investor Relations Director
Maj.Nazir@kingfisher.com